The path to Value Added Tax (VAT) implementation in the GCC

An outcome-based approach for VAT introduction in the Gulf region

Value Added Tax (VAT) is a tax on transaction; each purchase or sale involving goods or services must be assessed for VAT purposes and the correct tax treatment applied. The concept is simple in theory, yet from a business impact perspective the changes that the tax necessitates are often extensive. Examining the impacts of VAT implementation in the GCC on a multi-dimensional basis, developing a roadmap and program of change, making that change and testing the results is the approach we follow to equip businesses for VAT introduction in the Gulf.

Overview of our approach for VAT implementation in the GCC

We believe that a phased approach to work of this nature ensures that you have the right level of control over what we will be doing for you, whilst also allowing us to match our outputs to your needs.

Phase 1: As-is impact assessment

Knowing what we know, we look at the business across a range of its dimensions and challenges and document the likely impact of VAT from a high-level.

Phase 2: Response strategy and roadmap

We provide an overview of changes necessary to accommodate VAT, when deployment will take place and likely cost.

Phase 3: To-be planning and preparation

We develop the detailed “to be” for the organization as a whole, together with new transaction maps, system requirements.

Phase 4: Implement and test

Working with the business we roll out the changes designed and developed in Phase 3. We test the changes with you to ensure that what we set out to do has been achieved.

Deloitte and VAT: Deep subject matter expertise and proven VAT implementation capabilities in the GCC and across borders

Deloitte has set up a dedicated VAT implementation team in the GCC with extensive practical experience from implementing VAT systems in other jurisdictions, such as Malaysia. We recognize that a successful VAT implementation will require more than tax expertise – our multi-disciplinary team combines specialist knowledge and input across key competency areas: systems and technology, people and processes, financial modelling, change management and project management. We also understand the importance of industry expertise and have team members who bring deep knowledge and experience in all major industries to help businesses in the GCC throughout their VAT journey.

Our suite of tools and enablers

Based on our past experience with VAT implementation, and working with VAT systems globally, we have tailored a range of tested tools and enablers for the GCC – from proprietary software technology, to best practice approaches on internal communication and training. These can be deployed as needed to meet business requirements with your path to VAT implementation.

Key contacts

Managing Director | Indirect Tax

Justin is a Managing Director and Indirect tax and VAT leader in Deloitte Middle East. Justin has advised clients across many sectors including telecoms, real estate businesses, retailers and many oth... More

Director | Indirect Tax

Stuart is an Indirect Tax services director, focusing on Customs & International Trade and municipal taxes. His team also supports businesses in dealing with regional sales taxes. Stuart works extensi... More

Director | Indirect Tax

Bruce is a VAT specialist based in Dubai and has over 30 years of experience in VAT implementation processes most recently in Australia and Malaysia. He is using his experience in the GCC to advise on... More

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